The Payment Services Directive: Is the ATM being neglected?

London - 30 June 2008

Level Four, a leading supplier of open standards-based ATM software, today launched its Guide to the ATM and the Payment Services Directive (PSD). Level Four created the guide in response to the lack of information available to banks about the significant impact the law will have on the ATM channel.

The PSD, which is the legal framework for the adoption of a harmonised cross border payment area in Europe, is widely regarded as milestone legislation in retail banking. With member states looking to interpret the law at a national level, there has been much discussion around the numerous considerations across multiple banking channels. However, past implementations of financial regulations such as EMV have shown that preparations for the ATM channel are all too often left until the last minute, resulting in implementations being rushed through and important details overlooked.

With the impending 2009 deadline, ATM operators must ensure they make sufficient preparations in order to maximise the opportunity presented by the PSD. It is also imperative that they understand how the regulations will impact day-to-day operations. This latest guide from Level Four highlights the business impact of the PSD on the ATM channel, focusing on the potential challenges that banks must address now in order to be prepared for the future, harmonised banking environment.

Ian Kerr, CEO of Level Four said: “Financial institutions can draw parallels between the introduction of EMV and the imminent steps required towards PSD compliance. During EMV roll-out, the ATM was left as something of an after-thought. There was little consideration for the impact on the channel, which resulted in confusion and difficulties in migration. It is vital that banks learn from this past experience and begin to seek solutions to adhere to the principles of SEPA and comply with the PSD now, evaluating how these latest regulations will impact the ATM. Banks can use this as an opportunity to rationalise and innovate the ATM channel – their most frequent customer touch-point.”